Bulletin, October 21, 2014, Renewal with Altered Terms

Last Updated: October 21, 2014

Date: October 21, 2014
To: All Insurers Authorized to Write Business in Wisconsin
From: Theodore K. Nickel, Commissioner of Insurance
Subject: Renewal with Altered Terms

​Paragraph (a) of s. 631.36 (5), Wis. Stat., "Renewal with Altered Terms," requires an insurer to send a renewal notification 60 days prior to the renewal date if the policy is renewing on less favorable terms or at higher premiums.

Section 631.36 (5) (b), Wis. Stat., provides that:

(b) Exception. Paragraph (a) does not apply if the only change that is adverse to the policyholder is a premium increase and if either of the following applies to the premium increase:

  1. The premium increase is less than 25% and is generally applicable to the class of business to which the policy belongs.
  2. The premium increase results from a change based on action by the insured that alters the nature or extent of the risk insured against, including but not limited to a change in the classification or the units of exposure or increased policy coverage.

Therefore an insurer is not required to provide a renewal notice to the consumer if the only adverse change is increased premium and 1) the increased premium is a result of an insurer change and is less than 25%; 2) due solely to a change based on the action of the insured that alters the risk insured against; or 3) a result of both insurer and insured action, but the insurer portion of the increase is less than 25%.

Any questions regarding this bulletin should be directed to Cari Lee, Director of the Bureau of Market Regulation, at (608) 266-8885 or cari.lee@wisconsin.gov.